Norwegian Cruise Line Holds Up in Q3, Beating Expectations by $0.05

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Norwegian Cruise Line ($NYSE:NCLH) Holdings Ltd. The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. The company reported its third-quarter results today, with non-GAAP EPS of -$0.64, beating expectations by $0.05. Norwegian Cruise Line Holdings attributed the miss to lower-than-expected onboard spending and a higher-than-expected negative impact from currency exchange rates.

However, the company’s bottom line was helped by cost-cutting measures. Despite the miss on revenue, Norwegian Cruise Line Holdings’ bottom-line beat is a positive sign that the company is successfully managing its costs in the face of headwinds. And with the company’s fourth-quarter guidance coming in above expectations, Norwegian Cruise Line Holdings appears to be on track to end the year on a strong note.

Earnings

The Company has two new ships on order: Norwegian Encore for Norwegian Cruise Line and Regent Seven Seas Explorer for Regent Seven Seas Cruises.

Share Price

stock rose 3.7% on Tuesday after the company reported better-than-expected earnings for the third quarter. The company’s strong results come despite challenges in the cruise industry, including the coronavirus pandemic. Norwegian Cruise Line has been working to improve its financial position and has taken steps to reduce costs. The company’s efforts seem to be paying off, as it beat expectations in the third quarter. With the company’s strong performance in the third quarter, Norwegian Cruise Line is positioned well to weather the challenges that remain in the cruise industry.

VI Analysis

is a global cruise company operating three cruise lines: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises.

VI Peers

The company operates through three segments: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. It offers cruises to destinations in the Caribbean, Europe, Alaska, South America, Asia, and the Pacific. The company was founded in 1966 and is headquartered in Miami, Florida. The company’s competitors include Royal Caribbean Group, Hilton Worldwide Holdings Inc, Wyndham Hotels & Resorts Inc.

– Royal Caribbean Group ($NYSE:RCL)

Royal Caribbean Group is a cruise company that operates Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises brands. The company has a market cap of 12.55B as of 2022 and a Return on Equity of -53.73%. Royal Caribbean Group is headquartered in Miami, Florida.

– Hilton Worldwide Holdings Inc ($NYSE:HLT)

Hilton Worldwide Holdings Inc is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. It has a market cap of 35.99B as of 2022 and a Return on Equity of -148.2%. The company was founded in 1919 and is headquartered in McLean, Virginia.

– Wyndham Hotels & Resorts Inc ($NYSE:WH)

Wyndham Hotels & Resorts Inc is a hotel and resort company that operates globally. As of 2022, the company has a market capitalization of 6.34 billion dollars and a return on equity of 30.65%. The company’s primary business is owning, operating, and franchising hotels and resorts under various brands.

Summary

Norwegian Cruise Line Holdings Ltd. is a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. The Company’s growth strategy is focused on expanding its fleet to drive increased yield and market share to generate strong financial returns. The Company has created an award-winning product that appeals to a wide range of consumers and has invested significantly in onboard amenities, accommodations and destination experiences. This has resulted in strong brand recognition and customer loyalty.

The Company has a proven track record of delivering shareholder value. Norwegian Cruise Line Holdings Ltd. has generated strong financial results with double-digit earnings growth in each of the last six years. Norwegian Cruise Line Holdings Ltd. is well-positioned for continued growth and offers an attractive investment opportunity for investors seeking exposure to the cruise industry.